More Open Skies Can Take India-UAE Relationship To Next Level

That apart, the focus on economic integration and cooperation has necessitated the need to open up the skies and boost connectivity between the countries. Beyond economics and trade, the growing strategic partnership between India and the UAE may also deepen through this move.

Speaking to the media on June 1, Clark highlighted surging air travel demand between the two countries.

He conveyed that the current restrictions on seat capacity and destinations are creating difficulties in meeting the explosive demand growth in passenger traffic. Connectivity and logistics are two areas affected as a result.

Therefore, he argued for increased access for UAE air carriers to Indian cities, which can raise the economic engagement between the two countries to the "next level".

The Emirates President flagged that if a more liberalised air travel regime is not initiated, Indian airports also risk losing their status as “key global transit hubs”. In the absence of any mutual understanding, international travellers will eventually start opting for connecting flights through airports in the Gulf region.

Afaq Hussain, Director, Bureau of Research on Industry and Economic Fundamentals (BRIEF), said, "Emirates is one of the largest airlines in the world, with bigger and wider aircraft than most others. If Emirates reaches more Indian cities, it would mean more passengers and more cargo. Often, there are perishable cargo materials like food and medicines, which need faster transportation. More open skies between India and the UAE can solve the problem."

India-UAE: Already Economic Partners

Clark is right about the rapidly evolving and positive bilateral India-UAE relations, with the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in force since May 1, 2022. The agreement has enhanced trade and investment by reducing or eliminating tariffs on more than 80 per cent of the traded products, while expanding market access for services.

At the point of initiation, the CEPA was projected to increase the volume of bilateral trade from US$ 60 billion in 2022 to US$ 100 billion in 2027, with probable beneficiary sectors including textiles, energy, gems and jewellery and agricultural goods.

However, the CEPA is not just about reducing tariff barriers. It is also meant to reshape the connectivity and logistics landscape between these two countries. It is already hastening the process of a logistics boom — enhancing the demand for faster and more integrated supply chains.

Logistics infrastructure initiatives like the India-Middle East-Europe Economic Corridor (IMEC) have the potential to revolutionise trade flows by cutting transit times and slashing logistics costs. The Emirates Airline chief’s observations should be considered within this broader shift.

From Economic To Deep Strategic Partnership

Though it started on the economic front, the India-UAE partnership is also in the process of developing deeper strategic ties. The recent India visit of the Crown Prince of Dubai, and the launch of fresh initiatives in trade, health and education, underline the shared ambition of the countries to lift the bilateral relationship to a long-term and strategic partnership.

There is, of course, a geopolitical context as well. The history and legacy of the India-UAE relationship can serve India well in the Middle East, even politically. During the recent India-Pakistan military tension, the UAE has played an active diplomatic role, to a large extent serving India’s interests.

India has also sent out a high-level and multi-party delegation to the UAE, as part of its global outreach campaign to build international consensus against terrorism and to isolate Pakistan on the global stage. The UAE can play the role of a regional stabiliser for India, particularly in the Middle East.

A Confidence-Building Measure Can Go A Long Way

The Emirates Airlines’ President's call for more open skies with India aligns with the broader future trajectory of India-UAE relations. It is a developing partnership of economic complementarity, strategic trust, and a shared vision for connectivity and economic growth across the Gulf and Indo-Pacific regions.

A more liberalised air traffic rights between these two countries can be a good starting confidence-building measure that can catapult both to the next level of partnership by increasing connectivity.